It’s a convenient excuse, certainly, but one that isn’t true. In fact, it’s been statistically proven that employees today stay longer with a company as compared to decades before. In 1983, for instance, the average time an employee stayed in a company was 3.5 years. Today, that number is much higher. So if you’re still blaming those ‘job-hopping Millennials’, you’re way off the mark.
Is it the money?
Surprisingly, it isn’t. In fact, a study conducted by Hays in 2017 found the opposite to be true. Many people—a whopping 71%–would actually accept a pay cut if it meant finding a ‘better job. Employers that tended to just ‘throw money at the problem’ actually risk alienating people right out the door of their business. So what is it? That’s a question closely tied to, again, why people leave to begin with.
1 – It’s a cultural thing.
The prime reason that many good employees leave is because of your company culture. When you talk about culture, this refers to having an atmosphere of open communication, work-life balance, and strong leadership primarily. So, no, it isn’t just about having “free lunches” and “team outings” as good as those things are to have.
You want to make your employees feel that you have a firm grasp of things. Strong leaders are those who have a clear vision for the future, a realistic attitude towards achieving that vision, and decisiveness. You then need to pair all these with an environment that truly values not only their opinions, but their lives beyond work as well.
2 – It’s a trust thing.
Another thing that employees take issue with is whether or not you trust them. You might already know that trust isn’t simply a statement. What you might not know is that it’s actually a very long-term commitment. It begins with the freedom that you give your people to pursue their goals within the demands of their roles. It needs, however, to continue with true autonomy day in and day out.
3 – It’s a flexibility thing.
Remote work is the future, today. With technology, today up to the task of equalizing the quality of remote and in-office work, more and more employees are seeing the viability of this option—and questioning why it isn’t available to them. The common argument that it ‘destroys’ productivity has already been proven to be a complete falsehood—by a Stanford study no less.
So, what does it cost you?
If you had a business with over 500 employees and an average annual turnover of 90 employees, the loss amounts to $3 million USD. It might seem like an overblown figure until you break each loss down to its key components.
These costs are defined as what you spend to get qualified hires from the moment that you post a job to the point where you onboard them. While those are the main components of it, you could also factor in what you lose actively with the departure of the talent you’re replacing. These costs are only mitigated by the expediency by which you find a replacement.
Even the most qualified of hires isn’t just going to take to their new job that quickly. There is that inevitable honeymoon phase where hopes are high but the output is still furtive and evolving. In the meantime, whatever needs that role met can still go unmet to a degree that you’ll find satisfactory. This period can be very trying and potentially is very volatile.
A Better Solution
The most obvious solution to the problem of attrition is actually fairly obvious: change your company up. It seems like a simple thing to do, but the devil is in the details. Not only does this solution require a complete paradigm shift, but it might also require costly measures to be implemented. For a company that might already be wrestling with costs brought about by the loss of employees, this isn’t a solution that’s ideal.
Do Away With Top Talent Attrition…
Remote outsourcing allows you to focus on what matters the most. You fill key job roles with the right kind of people. Right off the bat, you’re getting people who love what they’re doing. They work from home, avoid the stress of the commute, and enjoy a work-life balance. Provided you get the right partner in outsourcing, you’re also getting talent that’s well adapted to the rigors of this setup.
…And Reduce Your Costs Altogether!
Perhaps one of the most appealing aspects of this particular solution is the overall savings you enjoy. First and foremost, you do away with both the time and money spent on recruitment. You usually simply have to match and evaluate talent from an already existing pool. Second, and one that most people don’t realize, is that you don’t have to invest in a lot of overhead expenses. Working with a remote team means no expenses for office space rental, no investment in equipment, and significantly lower spending on compensation.
CrewBloom is the Right Partner
We are a remote outsourcing company that is built on a foundation of trust in the outsourcing model. All the key roles in our company are filled by top Filipino talent that works out of their homes. Not only has this proven to be an effective way to grow, but it has also afforded us a great deal of savings from no overhead costs. This we pass on to our client-partners for up to 70% savings on their end.
If you’re interested in reducing the costs of what you would normally spend to get the best people for your company’s key roles, hop on a quick call with us! Or you can send us an email at firstname.lastname@example.org. We’ll be more than happy to talk to you about how you can achieve your growth goals today.